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TMI Blog1971 (1) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee-company obtained on lease the New Sawan Sugar and Gur Refining Co. During the period from January 29, 1946, to April 23, 1946, the assessee-company purchased 41,300 shares of the said company for Rs. 12,17,006. On April 30, 1947, the entire block of shares was sold to Produce Exchange Corporation Ltd. for Rs. 8,46,750. The transaction resulted in a loss of Rs. 3,70,356. This loss was treated by the assessee as a trading loss for the assessment year 1948-49. After setting off this loss against the other income of the assessee-company, a loss of Rs. 2,27,085 was carried forward under section 24(2) of the Income-tax Act, 1922 (to be hereinafter referred to as the Act), to the year 1949-50 and later years. The assessee claimed to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y about six months after the commencement of the lease. It is also not stated by the Tribunal whether there is any evidence of inter-relation between the purchase of shares and the manufacture of sugar. " In view of that conclusion this court directed the Tribunal to submit a supplementary statement of case on some of the points formulated in the order. The Tribunal accordingly submitted a supplementary statement of case. Even after considering that supplementary statement, this court found itself unable to record its opinion on the question referred to. This Court was also of the opinion that the question which the Tribunal was directed to and did refer was defective and restricted the scope of the enquiry. It accordingly refrained the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a single transaction and the purchase of those shares is also more or less of the same character ; (3) The business of the company as well as the transaction relating to the shares were attended to as part and parcel of the assessee-company ; (4) A common fund was utilised both for business purposes as well as for the purchase of shares. A part of the overdraft of Rs. 6,80,046 taken from the bank on December 31, 1947, has been discharged from out of the income of the business ; and (5) the share transaction work as well as the other business of the assessee-company were carried on in the same place of business. From the facts found by the Tribunal, it is clear that the share transaction as well as the other businesses of the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istence of inter-connection, inter-lacing, inter-dependence and unity between two or more businesses. In Commissioner of Income-tax v. Prithvi Insurance Co. Ltd. this court ruled that inter-connection, inter-lacing, inter-dependence and unity were furnished by the existence of common management, common business organisation, common administration, common fund and a common place of business. This conclusion was reiterated by this very Bench in Produce Exchange Corporation Ltd. v. Commissioner of Income-tax. Therein, the assessee-company carried on business as a dealer in diverse commodities and also stocks and shares. In the year of account 1949, it had suffered loss of Rs. 3,71,700 in the sale of shares which the company claimed to carry fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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